Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6004499 with Michigan CAT division of MacAllister Machinery Co, Inc., for Parts and Repairs Services for Caterpillar Backhoe Loaders, Front End Loaders, and Engine related Equipment for a total contract amount not-to-exceed $400,000.00 and a term of two years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of June 15, 2022
Item No.: 22-00826
Contract No.: 6004499
Contractor: Michigan CAT division of MacAllister Machinery Co, Inc.
Contractor Address: 19600 Dix Toledo Rd, Brownstown Charter Twp, MI 48183
Contract Amount: $400,000.00
Term: 7/1/22-6/30/24 (2 year)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6004499
Parts and Repairs Services for Caterpillar Backhoe Loaders, Front End Loaders, and Engine related Equipment
Michigan CAT division of MacAllister Machinery Co, Inc.
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6004499 with Michigan CAT division of MacAllister Machinery Co, Inc., for Parts and Repairs Services for Caterpillar Backhoe Loaders, Front End Loaders, and Engine related Equipment for a total contract amount not-to-exceed $400,000.00 and a term of two years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION - SOLE SOURCE
Detroit Water and Sewerage Department’s Fleet Operations Division uses Caterpillar (CAT) brand equipment such as backhoes, front, and backend loaders on a regular basis to excavate water main breaks and to service water lines, sewers, and basins and is responsible for ensuring all DWSD owned Caterpillar equipment is operational and safe to use. This requires parts, maintenance, and repair services, including warranty repairs, are conducted on an as-needed basis to keep the equipment in good working order.
DWSD’s fleet is mostly comprised of CAT products, which are only sold and maintained through Michigan CAT, a division of, MacAllister Machinery Co., Inc.; they are the sole provider for the purchase and maintenance repairs of Caterpillar brand equipment for the entire State of Michigan.
PROCUREMENT METHOD
This contract was competitively solicited per RFB #493014 on April 5,2022 with a closing date of April 29, 2022, through the Michigan Intergovernmental Trade Network. The RFB was solicited to 147 suppliers which generated 1 responsive, responsible bidder, Michigan CAT, a division of, MacAllister Machinery Co., Inc.
Michigan CAT, a division of, MacAllister Machinery Co., Inc., is the only authorized Caterpillar service and support supplier of Caterpillar (CAT) brand equipment, OEM parts, repairs, and rentals for the entire State of Michigan. Requisition #493014 was approved by Budget on 3/11/22.
Based on the information above, it is recommended that the contract be awarded to the sole responsive and responsible bidder, Michigan CAT, a division of, MacAllister Machinery Co., Inc.
Michigan CAT, a division of MacAllister Machinery Co. Inc., clearances expire 11/22/22 and a formal amended contract document is not required.
SUMMARY
A. Contract No: 6004499
B. Contract Term: 7/1/22-6/30/24 (2 year)
C. Total Contract Amount: $400,000.00
D. Projected FY Expenditures:
FY 22-23: $200,000.00
FY 23-24: $200,000.00
E. Funding Source: O&M Funds
F. GL String:
5820-20178-492432-622300-000230-15948-0000-000000- 50%
5720-20167-482432-622300-000209-10830-0000-000000- 50%
This contract was presented to the BOWC Finance Committee on June 1, 2022. Per the DWSD Procurement Policy, no other approvals are required.